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What goes into credit score? | Adulting

Some things are more important when it comes to your credit, like paying your bills on time.

SACRAMENTO, Calif. —

We’ve talked about credit a lot, I know, but it’s an important part of being an adult. 

Now we’ve already explained why your credit score matters and there’s a lot of factors that help you build one up, so let’s get into what actually goes into your credit score.

First off, the most important thing in your credit score is making sure you pay your bills on time. That’s about 35 percent of your score. And it’s not just your credit card bills, but all bills, like rent, utilities and cable. So if you’re late on payments, your score goes down.

Secondly, 30 percent goes into how much debt you take on. Even if you have a credit card with a high limit, you still don’t want your debt to be high, so keep it low and your score can go higher. 

How long you’ve had credit factors in next. Basically, this shows how responsible you've been with credit cards and your credit history. That’s 15 percent.

Ten percent accounts for how many credit card applications you have submitted. The more you have applied for, the lower your score goes. 

And finally, another ten percent goes into how many different types of credit you have. If you have home loans and pay your credit card payments on time, that shows good payment management, resulting in a higher score.

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